Fashion Channel (4) & (5) Exhibits Harvard Business School Publishing Brief Case 2075 Case Software Copyright © 2007 Harvard

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000.400 Insert scenario results from revenue calculator $81.600.000 Grey = student input area $0 2016 52 $0 $0 2016 52 $0 $0 2016 52 $0 $0 2016 52 $0 * Revenue/Thousand Viewers ** Calculated by multiplying Average Viewers by Average CPM 2006 Actual 2007 Base Scenario 1 Scenario 2 Scenario 3 Assumptions Exhibit 5: Financials Revenue Ad Sales Affiliate Fees Total Revenue Expenses Cost of Operations Cost of Programming Ad Sales Commissions Marketing & Advertising SGA Total Expense Net Income Margin $230.000 ($31.300.000.700.000 $81.600.000.918.711.200.000 1.000.000) ($31.700.000 $113.000 110.600.630.000 110.630.000.488 30% $72.600.000 Spreadsheet calculates automatically ($31.300.600.700.000 $81.000 $41.000 $40.918.000 $310.200.000.100.xls (Exhibits 4.000) -39% $41.000 $72.300.000 $72.000 $81.000) Spreadsheet calculates automatically -39% -39% Spreadsheet calculates automatically 61977405.300.000 $113. 5) HBSP Confidential Page 2 of 2 .000 $216.00 $2.912 $45.Exhibit 4: Ad Revenue Calculator Ad Revenue Calculator TV HH Average Rating Average Viewers (Thousand) Average CPM* Average Revenue/Ad Minute** Ad Minutes/Week Weeks/Year Ad Revenue/Year Incremental Programming Expense Current 110.600.100.000 $55.000 110.600.600.000.000 $81.000 $113.200.0% 1100 $2.000) -39% $41.000 $72.000 $81.100.200 2016 52 $230.630.000 Growing with inflation 3% $113.000 $6.000 $70.000 Grows 2% per year with population $81.000.000 $81.400 2007 Base Scenario 1 Scenario 2 Scenario 3 110.000 Grows 3% per year with inflation Add incremental programming expense 3% of ad sales revenue Reflects increased spending of $15M $41.000.400 $80.912 $93.700.100.000 ($31.200.000.

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